ROCA HONDA RESOURCES; WATER TREATMENT … HONDA RESOURCES; WATER TREATMENT PLANT 60% DESIGN GRANTS,...

Lyntek, Inc. 1550 Dover St. Lakewood, CO 80215 Phone: (303) 623-8365 Website: www.lyntek.com Fax: (303) 623-0342

ROCA HONDA RESOURCES; WATER TREATMENT PLANT

60% DESIGN

GRANTS, NEW MEXICO

Prepared for:

Lyntek Project Manager: Roderick Smith

Lyntek Project Engineer: Daniel Trump

January 2011

Lyntek, Inc. i Project # 10034–Roca Honda Resources, LLC – Water Treatment Plant January 2011

TABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY .......................................................................................... 1

1.1 Introduction ............................................................................................................... 1

1.2 Plant Process ............................................................................................................. 1

1.3 Costs ......................................................................................................................... 2

1.3.1 Development of Costs ....................................................................................... 2

1.3.2 Capital Costs ...................................................................................................... 3

1.4 Operating Costs ........................................................................................................ 3

2.0 INTRODUCTION ........................................................................................................ 4

2.1 Scope of Work .......................................................................................................... 4

2.2 Process Description .................................................................................................. 5

2.2.1 Process Overview .............................................................................................. 5

2.2.2 Uranium Removal ............................................................................................. 6

2.2.3 Radium Removal ............................................................................................... 6

2.3 Electrical System ...................................................................................................... 6

2.4 Instrumentation and Automation .............................................................................. 6

2.5 Water Testing ............................................................................................................ 7

2.5.1 Uranium Testing ................................................................................................ 7

2.5.2 Radium Testing ................................................................................................. 7

2.6 Environmental and Permitting .................................................................................. 7

2.7 Capital and Operating Cost ....................................................................................... 8

3.0 PROCESS DESCRIPTION .......................................................................................... 9

3.1 Introduction ............................................................................................................... 9

3.2 Water Treatment Plant Flow Sheet (Drawing 10034-F-01 Rev. A) ......................... 9

3.3 Plant Operating Philosophy .................................................................................... 10

3.4 Equipment and Reagent Selection .......................................................................... 11

3.4.1 IX Columns – Uranium Removal .................................................................... 11

3.4.2 Reaction Tanks – Radium Removal ................................................................ 11

3.4.3 Pressure Leaf Clarifiers ................................................................................... 12

3.5 Ponds ....................................................................................................................... 13

3.5.1 Discharge Holding Pond ................................................................................. 13

3.5.2 Solids Holding Ponds ...................................................................................... 14

3.5.3 Settling Pond ................................................................................................... 14

3.5.4 Evaporation Ponds ........................................................................................... 14

3.6 Discharge Water Testing ........................................................................................ 15

3.6.1 Uranium Testing (In-House) ........................................................................... 15

3.6.2 Radium Testing (In-House) ............................................................................. 15

4.0 CAPITAL COST ESTIMATE ................................................................................... 16

4.1 Site Preparation and Civil work .............................................................................. 17

4.1.1 Plant Area ........................................................................................................ 17

4.1.2 Ponds ............................................................................................................... 17

Lyntek, Inc. ii Project # 10034–Roca Honda Resources, LLC – Water Treatment Plant January 2011

4.2 Plant Concrete ......................................................................................................... 18

4.3 Plant Equipment Capital ......................................................................................... 18

4.3.1 Plant Equipment .............................................................................................. 18

4.3.2 Plant Electrical ................................................................................................ 19

4.3.3 Plant Instruments ............................................................................................. 20

4.3.4 Plant Laboratory .............................................................................................. 21

4.4 Plant Equipment Installation ................................................................................... 21

4.4.1 Plant Mechanical Installation .......................................................................... 21

4.4.2 Plant Electrical ................................................................................................ 22

4.4.3 Plant Instruments ............................................................................................. 22

4.5 Plant Building ......................................................................................................... 22

4.6 Transportation Costs ............................................................................................... 23

4.7 Engineering and Construction Management Cost .................................................. 23

5.0 OPERATING COST ESTIMATE ............................................................................. 25

5.1 Operating Costs Overview ...................................................................................... 25

5.1.1 Personnel Costs ............................................................................................... 26

5.1.2 Power Costs ..................................................................................................... 26

5.1.3 Reagent Costs .................................................................................................. 26

5.2 Water Quality Testing ............................................................................................. 26

5.2.1 In house Radium and Uranium Testing ........................................................... 26

5.2.2 Outside Laboratory Radium and Uranium Testing ......................................... 27

6.0 CONSTRUCTION SCHEDULE ............................................................................... 28

LIST OF APPENDICES

Appendix A- Drawings

Appendix B- Quotations

Appendix C- Operating Costs

Appendix D- Equipment Sizing

Appendix E- Capital and Construction Costs

Appendix F- Design Criteria and Procedures

Lyntek, Inc. iii Project # 10034–Roca Honda Resources, LLC – Water Treatment Plant January 2011

TABLES

Table 4.1: Capital Cost Estimate ........................................................................................... 16

Table 4.2: Plant Area Preparation and Civil Costs ................................................................ 17

Table 4.3: Concrete Estimate ................................................................................................ 18

Table 4.4: Plant Equipment Costs by Area ........................................................................... 19

Table 4.5: Plant Electrical Equipment Cost .......................................................................... 20

Table 4.6: Plant Instrument Cost ........................................................................................... 20

Table 4.7: Equipment Installation ......................................................................................... 22

Table 4.8: Engineering Costs ................................................................................................ 23

Table 4.9: Construction Management Costs ......................................................................... 24

Table 5.1: Operating Costs (8000 gpm) ................................................................................ 25

Table 5.2: Operating Costs (4000 gpm) ................................................................................ 25

FIGURES

No figures entries.

Lyntek, Inc. 1 Project # 10034–Roca Honda Resources, LLC – Water Treatment Plant January 2011

1.0 EXECUTIVE SUMMARY

1.1 Introduction

Lyntek, Inc. (Lyntek) has been contracted by Roca Honda Resources LLC (Roca Honda) a

Strathmore Minerals Corp. Subsidiary, to conduct a 60% design of a new Water Treatment

Plant (WTP) for the purpose of Radium and Uranium removal from mine dewatering. The

proposed WTP is located in proximity to San Mateo, New Mexico. The purpose of the water

treatment is to remove Uranium and Radium from the mine water under the requirements of

the State of New Mexico water discharge regulations before it is released. Lyntek has been

instructed to make all decisions regarding Plant Operation and Design.

This report does not account for infrastructure required by the WTP or the mine. This

includes access roads, power lines, water lines, etc. These costs will be addressed

independently of the WTP and this report.

The design of the WTP has been performed using Best Available Technology (BAT). The

proposed automation is moderate and includes Plant Controlled Logic (PLC) to control

pump VFDs to maintain appropriate levels in tanks and ponds.

1.2 Plant Process

The proposed plant will be capable of processing 8,000 gpm with regular operation at 4,000

gpm. All ponds related to the plant have been sized for a capacity of 4,000 gpm but are able

to accommodate the 8,000 gpm requirement pending plant feed solids content.

The WTP utilizes an appropriate resin in eight Ion Exchange (IX) Columns to remove

Uranium. After uranium removal Barium Chloride (BaCl2) in solution is added to

precipitate Radium. The precipitated solids are filtered in Pressure Leaf Clarifiers and the

treated water is discharged through Discharge Ponds. Both of these methods have been used

extensively in the industry for removal of Uranium and Radium.


1.3 Costs

1.3.1 Development of Costs

To develop the Capital and Operating Costs Lyntek performed the following:

• Development of Process Flow Sheets;

• Development of Plant 3D General Arrangement Drawing;

• Development of Piping and Instrument drawings;

• Development of Electrical One-Line drawings;

• Development of a Site Layout;

After these drawings were reviewed by Roca Honda, Lyntek obtained the following:

• Budgetary Quotations for Equipment;

• Cost Estimates for all Civil, Structural Steel and, Concrete Work;

• A Budgetary Quotation for the Process Building;

• Cost estimates for installation of the plant and equipment;

• Cost Estimates for Piping from dewatering well to WTP;

• Cost Estimates for Settling Pond, Discharge Ponds, and Solids Retention Pond;

• Estimated Operating Costs for the concentrator.

The following ancillary and infrastructure items are outside of the scope of this study:

• Mine Plan and mining;

• Mine Dewatering Pumps and Wells;

• Warehousing and distribution;

• Communications external to the plant;

• All owners costs;

• Environmental Audits and all permits;

• Access Roads; (note that the roads in and around the WTP are included in the

estimate)

• Primary power supply line;

• Discharge Water after release into the arroyo


The above is a partial list provided for clarification purposes only. The following sections of

the report explain the costs and how they were developed.

1.3.2 Capital Costs

Lyntek has calculated the total installed costs for the Lyntek designed WTP which includes

the pipeline to deliver the water to the WTP, to the Release of the treated water. The

accuracy for this cost estimate is ± 15%. Written budgetary quotations have been obtained

for all equipment. Vendors were selected for this study based on Lyntek’s evaluation that

they will be capable of providing a desired product at a representative cost. Vendors and

quotations were not used that represented equipment that would not be selected for

construction, or were not representative of probable costs. Final selection of equipment will

be done after permitting, during the detailed engineering. In order to allow for any

miscalculations, omissions, or variation in costs, a 15% contingency factor has been added

to the bottom line total.

Total Cost for the WTP is estimated at $9,365,700

1.4 Operating Costs

Operation costs for the WTP includes all personnel required for operation, power

consumption, reagent consumption, maintenance costs, and water quality testing (in-house

and outside testing). Operating costs have been calculated for a maximum flow rate of 8,000

gpm, and a lower flow rate of 4,000 gpm. Annual operating costs are $1,683,907 and

$1,159,995 for their respective flow rates.


2.0 INTRODUCTION

Lyntek, Inc. (Lyntek) has been contracted by Roca Honda to conduct a 60% design of a new

WTP for the purpose of Radium and Uranium removal from mine dewatering to meet

discharge requirements required by the EPA and state regulatory agencies. The proposed

WTP is located in proximity to San Mateo, New Mexico.

The WTP will be capable of processing 8,000 gpm. This flow rate is expected to be at

maximum with the plant operating at approximately 4,000 gpm on a regular basis. All sizing

of equipment for the WTP have been for 8,000 gpm, generally from duplicating equipment

for 4,000 gpm and all sizing of ponds has been performed at 4,000 gpm. It is currently

unknown what concentrations of Radium and Uranium are expected. For the purpose of this

report it was assumed that Radium would be present at 63 pCi/L and Uranium would be

present between 0.1 to 1 ppm. Water discharge from the plant will be treated to discharge

standards below 15 pCi/L Radium and 0.03 ppm Uranium.

2.1 Scope of Work

Lyntek’s Scope of Work includes the following deliverables:

1. Design analysis including:

- General Description of the Design with design criteria;

- Justification for the selection of design alternatives;

- Operations and Maintenance design philosophy;

- Identification of Infrastructure requirements.

2. A Process Flow Diagram with a Mass Balance

3. A Process Instrumentation Diagram(s)

4. An Equipment List of Major Equipment

5. Equipment Specifications for Major Equipment

6. Plant General Arrangement Drawing(s)

7. Pond Design Drawings(s)

8. Site Plan

9. Detailed Cost Estimate-based on:


- vendor budgetary quotes for major equipment and metal buildings;

- estimated material take-offs (MTOs) for piping and valves;

- estimated MTOs of instrumentation;

- estimated MTOs of power supply and distribution;

- estimated MTOs of concrete;

- estimated MTOs of steel;

- estimated MTOs of earthwork;

- and factored ancillary costs.

The battery Limits for Lyntek’s Scope of Work are defined as the following:

1. Receiving the water from the dewatering pumps;

2. Receiving surface water run-off;

3. Discharging water to a designated surface drainage;

4. A receiving/holding pond;

5. A WTP including all related pumping and treatment equipment, operator and

administrative offices;

6. Treated water holding ponds;

7. Security Fence and Security System;

8. Maintenance and storage facilities to support the Water Treatment Facility.

2.2 Process Description

2.2.1 Process Overview

The WTP uses what is considered to be the BAT for the removal of Uranium and Radium.

Leak prevention and containment has been added throughout the Water Treatment Process.

Process selection and implementation were finalized by Lyntek with input from Strathmore

(Roca Honda Resources).

Lyntek has designed the Water Treatment Plant to treat for Uranium and Radium. These two

elements have been specifically selected for removal due to historical information which

demonstrates they will be above discharge limits. Other elements and compounds are


present in low amounts but are not of concern due to their low concentrations. This is

primarily due to the natural pH of the ground water and host material. Because the pH is

consistently 7.5 to 8.5, there are relatively few metals or other dissolved solids. In the event

that treatment is required for other compounds or metals, the necessary modifications will

be made to treat the water to meet discharge requirements. Treatment methods for other

compounds include Ion Exchange, precipitation, and Reverse Osmosis.

2.2.2 Uranium Removal

Uranium removal is accomplished by resins in Ion Exchange Columns. Ion Exchange is the

most common method for Uranium extraction and removal and is utilized extensively both

in Uranium processing and in water treatment.

2.2.3 Radium Removal

Radium removal will take place by Barium Chloride addition. Barium Chloride is also

considered to be the BAT for Radium removal and performs reliably and economically.

Radium co-precipitates in the presence of Barium Chloride and Sulfate. Because sulfates are

already present in the water from the mine dewatering, only the addition of Barium Chloride

is required to co-precipitate the Radium.

2.3 Electrical System

Lyntek has developed a Capital Cost Estimate for the electrical requirements associated

directly with the WTP. Total power draw for the plant is expected to be 724 KW at 8000

gpm. It is currently planned to provide power to the WTP from the main substation at the

mine. A substation is included with the WTP that will receive power at 4160 volts from the

main substation.

2.4 Instrumentation and Automation

Lyntek included instrumentation and automation where it is required in order to prevent

overflow, regulate flow, and provide appropriate plant monitoring. The plant will require


manual operation for preparation of reagents, resin transfer, and pressure leaf clarifier

cleaning.

The plant is equipped with a PLC which will control flow rates and monitor levels and valve

positions throughout the plant. Valves which are over 6” and valves in hard to reach places

(such as on top of the IX Columns) have been equipped with actuators for ease of operation.

2.5 Water Testing

2.5.1 Uranium Testing

Uranium Testing is planned to take place on-site using a Kinetic Phosphorescence Analyzer

(KPA) which yields real time results for Uranium monitoring.

Uranium testing will also take place at an outside laboratory to confirm on-site test results.

Outside laboratory testing requirements will be determined by the governing state regulatory

agency.

2.5.2 Radium Testing

On-site Radium Testing has been included in the design for the WTP. Radium testing is also

scheduled to take place in outside laboratory.

On-site tests require additional equipment and tests are expected to be as expensive as or

more expensive than outside laboratory costs. The advantage to in-house testing would be

the relatively short turnaround time at approximately 10 to 12 hours, compared to outside

testing requiring approximately 3 days total. On-site radium testing is considered to be

optional at this time.

2.6 Environmental and Permitting

Current permitting and environmental work is assigned to Roca Honda. Lyntek will modify

plant design or other requirements as necessary.


2.7 Capital and Operating Cost

A Capital Cost Estimate has been performed by Lyntek based on budgetary quotations and

Material/Labor estimates. This includes all costs within Lyntek’s Scope of Work.


3.0 PROCESS DESCRIPTION

3.1 Introduction

The Roca Honda WTP is designed to receive water from the mining operation as required to

develop the underground workings and subsequently to support mining operations. The

design requirement of the plant is to receive water from the mine dewatering operations at a

rate of up to 8,000 gallons per minute (gpm) and to remove all suspended solids, radium,

and uranium. The experience from former operations in the Grants Mineral Belt is that

radium may be experienced in any subsurface water and that suspended solids and uranium

may be experienced once mining operations start. The design uses what is recognized as the

Best Available Technology (BAT) with the flexibility to deal economically with a range of

flows and varying feed water quality.

This process description will cover:

1. The overall water treatment concept;

2. The operating philosophy;

3. The equipment and reagents selected;

4. Water Quality Sampling.

3.2 Water Treatment Plant Flow Sheet (Drawing 10034-F-01 Rev. A)

As may be seen in Drawing 10034-F-01 (Rev. A) located in Appendix A.1, water is

delivered to the plant in one or two 16 inch HDPE pipes. Depending on the quality of the

water delivered the water will be sent to:

1. A settling pond if suspended solids are anticipated otherwise the pond will be

bypassed;

2. To Ion-Exchange (I-X) columns if uranium is anticipated otherwise the I-X columns

will be by-passed ;

3. To Barium Chloride Reactor Tanks where the radium will be precipitated out of the

water after contacting the Barium Chloride.

From the Reactor Tanks the water will be pumped through Pressure Leaf Clarifiers where

the suspended solids are removed. Filtered water from the Pressure Leaf Clarifiers is


discharged to a Holding Pond, and piped to a discharge point in an arroyo at approximately

100 ft. lower elevation.

3.3 Plant Operating Philosophy

The design of the plant is such that:

1. No licensable materials are produced by the plant;

2. The systems are manually controlled except where required to minimize hazards;

3. Staffing will be minimal with maintenance support during operations being supplied

from the nearby mine site;

4. A laboratory will be located in the plant to prepare water samples and measure the

water quality.

With regard to non-licensable materials, uranium will be removed from the water onto the

resin in the I-X columns. Resin loading will be monitored by tracking the uranium content

of the water going to the I-X columns. Prior to the anticipated breakthrough the resin will be

removed from one column to a resin transfer truck or trailer using the resin transfer system

provided in the design. This “loaded” resin will be transported off site to be stripped. The

resin removed from the I-X column will be replaced either with fresh resin or stripped resin

that has been returned to the WTP.

The radium will be precipitated out using Barium Chloride and the precipitated radium and

any unused Barium Chloride will be filtered from the water in Pressure Leaf Clarifiers.

Periodically, the solids in the Clarifiers will be removed by sluicing into a Solids Pond on

site. The water level in the Solids Pond will be maintained two feet above the settled solids.

Once every four months the settled solids will be removed from the Solids Pond using a

vacuum truck and hauled to a low level radiation waste disposal site.

Similarly, the solids in the Settling Pond will be kept under water and removed by vacuum

truck to a low level radiation waste disposal site.


With regard to automatic controls, a Process Hazard Analysis has been performed and is

included as Appendix A in this report. The hazards of primary concern can be grouped into

a general category of “spill” hazards. These hazards have been addressed first by providing

containment and secondarily by limiting the quantity of spills with level sensors in tanks

with alarms.

3.4 Equipment and Reagent Selection

3.4.1 IX Columns – Uranium Removal

The Ion Exchange (IX) columns will remove the uranium. Lyntek is not aware of any other

technology that will perform this function and it is considered the Best Available

Technology (BAT).

A total of eight IX columns are planned to be installed, this allows for a maximum flow of

8,000 gpm to be treated below 0.03 ppm Uranium. The IX Columns are piped in parallel

allowing individual columns to be placed in service as required depending on the plant flow

rate. Further, any single column may be taken offline if necessary for maintenance or resin

removal. (See Drawing 10034-D-02 and 10034-D-03 located in Appendix A.2 for piping

details).

The Ion Exchange Columns will extract the Uranium to below 0.03 ppm to meet USEPA

discharge water regulation. As the resin loading approaches its maximum capacity, the IX

column will be taken offline, and the resin will be transported off site for stripping and

regeneration. Lyntek has selected the high capacity PFA600 resin produced by Purolite for

the WTP. However, several resins are available that may be used and will produce

acceptable discharge water reliably.

3.4.2 Reaction Tanks – Radium Removal

Water is fed from the IX Columns directly to Reaction Tank#1 (30-TK-10) through a down

comer to prevent short circuiting. Reaction Tank #1 has a retention time of 6.5 minutes at

8,000 gpm then overflows into Reaction Tank #2 (30-TK-20) for an additional 6.5 minutes

of retention time. Each reaction tank is equipped with an agitator (30-AG-10 and 30-AG-20)


to ensure proper mixing for Radium precipitation. The water then overflows into the

Overflow Tank (30-TK-50) and is pumped to the Pressure Leaf Clarifiers for filtration of the

precipitated Radium and excess Barium Chloride.

In order to facilitate precipitation, Barium Chloride will be dosed to the Reaction Tanks (30-

TK-10 & 20) at 15 ppm. The Barium Chloride feed is pumped from the Barium Chloride

Mix Tanks (30-TK-30 and 30-TK-40) by Barium Chloride Metering Pumps (30-PP-30 and

30-PP-40). These pumps will be controlled by a VFD receiving a signal from the flow meter

attached to the inlet pipe of Reaction Tank #1 (30-TK-10). The Barium Chloride Mix Tank

and Metering Pumps are redundant and only require 1 in operation at any given time. Each

tank provides Approximately 12 hours of continuous operation at 8,000 gpm.

All Tanks are equipped with level elements. Level elements in the plant serve as overflow

alarms and flow control. The Level Element located on the Overflow Tank (30-TK-50)

controls the Pressure Leaf Clarifier Feed Pumps (30-PP-10 and 30-PP-20) in order to

maintain the water level. In case of overflow or leak, the containment area has been sized at

110% of the largest tank (the Reaction Tanks) and contains two separate sump pumps for

dewatering in the event of any spill.

Radium removal by addition of Barium Chloride (BaCl2) is well documented and has been

used extensively for the purpose of Radium precipitation. A dose of 15 ppm Barium

Chloride and a retention time of 10 minutes allows for the full precipitation of all Radium

Isotopes. Radium may also be removed with certain resins. The removal by resin alternative

is much more costly. The Barium Chloride precipitation technique is considered to be the

BAT.

3.4.3 Pressure Leaf Clarifiers

The Pressure Leaf Clarifiers (40-FT-10, 40-FT-20, and 40-FT-30) are fed from the Pressure

Leaf Clarifier Feed Pumps (30-PP-10 and 30-PP-20). The precipitated Radium will be


filtered and the treated water discharged to holding ponds. Discharge water will be tested for

Water Quality Compliance, discussed further in section ‘3.6 Discharge Water Testing.’

Two Clarifiers will be online during standard operation with the remaining Clarifier on

Stand-by. Periodically the Clarifiers will require cleaning; this is expected to be performed

when a Clarifier reaches a pressure differential of 75psi across the filter. When this pressure

is reached, cleaning is required. The Clarifier will be taken offline, and flow will be

transferred to the third clarifier on standby. Removal of the solids in the Clarifier is

performed by the Backwash Pump (30-PP-10) which sprays a high pressure stream across

the clarifier filter cloth removing all solids. Solids are drained out the bottom of the Clarifier

and are sluiced in a trough into the Solids Holding Pond. Once cleaning is complete, the

Clarifier will remain offline until cleaning of another Clarifier is required.

The Clarifiers are pre-coated with Diatomaceous Earth (DE) to aid in filtration and prevent

filter cloth blinding. This pre-coating is performed each time the filter is cleaned and

brought online. This is an important step taken prior to bringing the Clarifier online to

enhance process performance and operations. At this time it is expected that the Clarifiers

will not require cleaning more than once per week per unit.

3.5 Ponds

3.5.1 Discharge Holding Pond

Filtered water from the Pressure Leaf Clarifiers will be sent to the Discharge Holding Ponds

for release. The Discharge Holding Ponds are sized to hold 1.2 hours of discharge at 4,000

gpm and will act as surge control for the treated water. Ponds will be lined with a Bentomat

Liner to prevent seepage. Water from the ponds will gravity flow to a drainage area located

downhill of the ponds. It is currently proposed to install a turbine at the end of this pipe to

recover energy. Expected energy recovery is approximately 50KW. See drawing 10034-C-

01 in Appendix A.4 for approximate location of the Discharge Holding Pond and other

ponds.


3.5.2 Solids Holding Ponds

Solids collected by the Pressure Leaf Clarifiers will be discharged into a settling pond where

it will be stored for later disposal at a low level radiation waste disposal site. A second

Solids Holding Pond will be available if maintenance or other shutdown of the primary

Solids Holding Pond is required. The Solids Holding Ponds will have containment

consisting of two plastic HDPE 80mil liners. The pond will be sloped to a sump with an 8

inch HDPE pipe. Leak detection is provided at the sump and, in the event of a leak, solution

may be pumped from the sump. Water in the pond will be kept at an appropriate level to

prevent any hazardous solids being blown out. See drawing 10034-C-01 in Appendix A.4

for the proposed location of these ponds.

When ponds require solids removal, a vacuum truck will collect and dispose of the solids at

a site for low level radiation waste.

3.5.3 Settling Pond

The Settling pond serves to collect any solids which may otherwise negatively affect the

WTP. A second settling pond will be available if maintenance or other shutdown of the

primary Settling Pond is required. The Settling Ponds are required to remove any solids

specifically because the resin involved in Uranium removal cannot tolerate high solids.

Solids collected in the Settling Pond will be stored for later disposal at a low level radiation

waste disposal site. The Settling Ponds will have containment consisting of a geotextile

Bentomat layer and two plastic HDPE 80mil liners. The pond will be sloped to a sump with

an 8 inch HDPE pipe. Leak detection is provided at the sump and, in the event of a leak,

solution may be pumped from the sump. Water in the pond will be kept at an appropriate

level to prevent any hazardous solids being blown out. See drawing 10034-C-01 in

Appendix A.4 for approximate location of these ponds.

3.5.4 Evaporation Ponds

Evaporation Ponds are located where potential runoff water could be contaminated with

Radium or Uranium. These Evaporation Ponds will be sized for the 100 year rain event and


lined with a Bentomat layer to prevent seepage. They will be equipped with level elements

and pumps which will pump water to the WTP for removal of Radium and Uranium.

3.6 Discharge Water Testing

The WTP will contain a fully functional laboratory equipped with instruments and required

facilities for pH, ORP, Solids testing, Uranium detection, and Radium Detection. A Hach

Metals instrument will also be included in the laboratory which will allow for testing of

various metals which maybe a concern or require monitoring.

3.6.1 Uranium Testing (In-House)

Uranium testing will be performed using a ChemChek Kinetic Phosphorescence Analyzer

(KPA). By exciting the Uranium molecules using a laser, the Uranium emits radiation which

is measured. The measured radiation is used to calculate a concentration. Results for this test

are produced immediately. The Detection Limit for Uranium Testing using Kinetic

Phosphorescence is 0.01 µg/L. After equipment purchase, operating costs are essentially

labor costs.

3.6.2 Radium Testing (In-House)

A Testing procedure which is outlined in Appendix F.2 has been identified for Radium

Testing on site. Expected turn-around for this Radium testing procedure is approximately 12

hours, and can be completed in a single operating shift. At this time it is unknown if radium

testing on site is required.


4.0 CAPITAL COST ESTIMATE

Capital Cost estimates have been provided for all areas which are contained in Lyntek’s

scope of work for the WTP. This includes the WTP, Discharge Ponds, Solid Pond, Settling

Pond, and pumping equipment for the evaporation ponds. This does not include any

necessary infrastructure, Mine Dewatering, Civil work for evaporation ponds, or any costs

not directly related to the WTP, Table 4.1 outlines these costs. Appendix E.1 provides a

capital cost summary which outlines these costs.

TABLE 4.1: CAPITAL COST ESTIMATE

Direct Costs

Equipment $ 2,541,097

Piping and Valves $ 297,093 *Well Piping Not included

Mechanical Installation $ 152,295

Civil $ 862,327

Concrete $ 374,274

Electrical $ 619,353

Instruments $ 509,104 *includes PLC

Building $ 489,000

Plant Structural Steel $ 18,484

Coatings and Sealants $ 25,000

First Fills $ 769,403

Starup Spares $ 50,822

1st year Capital Spares $ 76,233

Subtotal $ 6,784,483

Indirect Costs

Transportation $ 330,343 13% of Equipment

Detailed Engineering $ 495,783

Construction Management $ 478,000

Startup Assistance $ 12,800

Subtotal $ 1,316,926

Total Capital Cost Estimate: $ 8,144,087

CONTINGENCY $ 1,221,613 15%

GRAND TOTAL $ 9,365,700


4.1 Site Preparation and Civil work

4.1.1 Plant Area

The plant area is contained in an 80’ by 280’ building (See Appendix A-3 for drawing

10034-G-01 plant layout). It has been positioned on the plateau on the west side of the mesa.

This is the best suited area for the WTP as it is the nearest flat area in proximity to the

underground mines and has drainage in close proximity. Frost depth in this area is estimated

at 30’. However, purposes for the WTP. This excavation depth is an estimate by Lyntek and

is dependent upon a soils report post permitting. See Table 4.2 for plant area preparation and

Civil Costs. These costs are shown in greater detail in Appendix E-4.

TABLE 4.2: PLANT AREA PREPARATION AND CIVIL COSTS

Earth Works by Area

Plant Area $ 53,101

Settling Pond (2) $ 374,685

Solids Holding Pond (2) $ 243,258

Discharge Holding Pond (1) $ 76,757

Evaporation Ponds (7) $ 84,000 *Bentomat Liner only

Plant Laydown Area $ 30,525

Subtotal $ 862,327

CONTINGENCY $ 129,349 15%

GRAND TOTAL $ 992,000

4.1.2 Ponds

Ponds have been sized at approximately 6ft operating depth with 2ft of freeboard. and have

been positioned on the same plateau as the WTP (See Appendix A-4 for drawing 10034-C-

01, 10, 11). Ponds will require a pre-engineered backfill to provide support for the pond

liners. The costs for the ponds have been developed using estimates based on the Pond

Drawings in Appendix X. Costs are assigned to these estimates using RS Means Building

Construction Cost Data 2010 and Means online resources. These costs will account for all

earth work performed.


It is expected that a large portion of the excavation for the ponds will require blasting to

loosen the rock for excavation. This is based on a visual inspection of the site, and will

require geotechnical work to determine if blasting is required. Pond liners will be comprised

of a single layer of Bentomat with the exception of the Solids holding ponds, and settling

ponds which will have two layers of 80mil HDPE for leak protection. Both the Solids

Holding Pond and Settling Ponds will be equipped with leak detection. Costs for these are

included in the civil costs shown in Table 4.2 and are detailed in Appendix E-4.

4.2 Plant Concrete

A Concrete estimate has been performed for the WTP. This cost has been performed using

plant layout 10034-G-01 shown in appendix A-3. A cost for this concrete has been

developed using a cost per cubic yard which includes all costs associated with concrete

materials and installation. See Table 4.3 for these costs. Additional detail for these costs can

be found in Appendix E-5.

TABLE 4.3: CONCRETE ESTIMATE

Plant Concrete by Area

Reaction Area $ 139,238

Leaf Filter Area $ 16,980

Resin Area $ 19,417

Building $ 198,639

Subtotal $ 374,274

CONTINGENCY $ 56,141 15%


4.3 Plant Equipment Capital

4.3.1 Plant Equipment

Equipment costs for the WTP are all priced based on Vendor quotation and budgetary

quotation. Minor equipment such as Safety Showers are priced using granger or equivalent

supplier. Equipment Capital Costs have been developed based on Lyntek’s Piping and


Instrumentation Diagram drawings 10034-D-01 through 10034-D-06. These drawings can

be found in Appendix A-2. All equipment which appears on these drawings can be found on

the equipment list in Appendix E-1. The equipment list includes a brief description of the

equipment, pricing, power requirements, and source. Specifications for equipment can be

found in the design criteria in Appendix F-1. Mass balances for equipment can be found in

appendix D.

Plant Equipment was selected for this report based on Lyntek’s experience with processing

equipment and a representative cost. All quotes for equipment used in this report are can be

found in Appendix B. A plant Equipment Cost by Area is show in Table 4.4.

TABLE 4.4: PLANT EQUIPMENT COSTS BY AREA

Plant Feed and Settling Pond $ 46,652

IX Colum Area $ 1,005,686

Barium Chloride Reaction Tank Area $ 427,759

Pressure Leaf Clarifier $ 742,220

Discharge, Solids, Evap. Pond Area $ 47,180

Laboratory and QAQC Equipment $ 154,500

Plant Ancilary Equipment $ 117,100

Equipment Total $ 2,269,497

Contingency $ 340,425 15%


4.3.2 Plant Electrical

Electrical costs for the WTP begin with the transformers at the plant. No costs for necessary

infrastructure or power lines have been accounted for in this costing exercise. Costs for

plant electrical equipment are gathered using quotations from vendor for equipment costs.

Installation for all electrical equipment has been performed by Lyntek using estimations for

installation hours and labor rates. These estimations are based on Lyntek’s prior experience

for electrical installation, and RS Means Building Construction Cost Data 2010 where


applicable. Costs for electrical equipment is shown below in Table 4.5. Further detail can

be found in Appendix E-6.

TABLE 4.5: PLANT ELECTRICAL EQUIPMENT COST

Total

Medium Voltage Transformer $ 53,400.00

Motor Control Center $132,954.00

Cable $147,044.00

Cable Tray $ 32,070.00

Conduit $ 19,690.80

Grounding $ 36,397.00

Lightning $ 26,350.00

Remote Pump Panels $ 40,138.00

Lighting Panel Xformer $ 18,400.00

Lighting $112,909.00

Instrument Total $ 619,353 *Install Included



4.3.3 Plant Instruments

Instrument costs for the WTP have been developed using the Piping and Instrumentation

Diagrams located in Appendix A.2. An Instrument List shown in Table 4.6 identifies all

instrumentation located in the WTP.

TABLE 4.6: PLANT INSTRUMENT COST

HMI $ 22,682

PLC Panel $ 110,423

Radio Comms $ 127,621 Remote I/O Panel $ 50,305 Hand Switches $ 76,040 Level Instruments $ 102,859 Flow Instruments $ 19,174 Instrument Total $ 509,104 *Install Included Contingency $ 76,366 15% GRAND TOTAL $ 585,000


Because of pump control philosophy, a Plant Logic Control (PLC) has been included with

the instruments. This will allow for easier operation and monitoring of the WTP. Also

included in the instrumentation is appropriate level Elements, pressure gauges, flow meters,

and relay devices for the 7 proposed evaporation ponds. Costs for instruments and

installation can be found in Appendix E-7.

4.3.4 Plant Laboratory

The plant laboratory includes a general facility for a WTP which includes equipment for pH,

ORP, Conductivity, % Solids, Turbidity, etc. it includes laboratory counters, Sink, cabinets

and the installation of these items. This cost is estimated based Lyntek’s experience with

laboratories of this type. Costs for the laboratory are included in the total capital equipment

cost shown in Table 4.4 and detailed in Appendix E-1. Cost for the laboratory include a

general WTP laboratory in combination with Uranium and Radium Testing. Instruments

Specific to Radium and Uranium testing have their costs shown separately.

Radium and Uranium Testing equipment are also shown on the equipment list in Appendix

E-1. Costs for uranium testing has been quoted by Chemchek using their Kinetic

Phosphorescence Analyzer (KPA). Radium Testing has been estimated by Lyntek for the

system described in Section 3.6.

4.4 Plant Equipment Installation

4.4.1 Plant Mechanical Installation

Cost estimates for installation of plant equipment and piping is based on Lyntek’s

Equipment List in Appendix E-1, and Lyntek’s general arrangement drawing 10034-G-01 in

A-3. Installation hours are estimated using Lyntek’s past project experience with equivalent

equipment. Labor Rates are estimated using RS Means Building Construction Cost Data

2010. See Table 4.7 for costs of installation and Appendix E.3 for additional detail

regarding equipment and piping installation costs.


TABLE 4.7: EQUIPMENT INSTALLATION

Total

Tanks $ 14,740

Pumps $ 16,500

Equipment $ 15,840

Piping $ 37,840

Foreman/Supervision $ 21,000

Equipment Rental and Others $ 46,375

Instrument Total $ 152,295



4.4.2 Plant Electrical

Electrical installation costs have been included with the electrical equipment costs shown in

Table 4.0. Additional detail can be found in Appendix E-6. Installation costs estimates are

based on Lyntek’s past experience with equivalent electrical equipment. Labor rates for

installation are estimated using RS Means Building Construction Cost Data 2010.

4.4.3 Plant Instruments

Cost estimates for installation of plant instruments is based on Lyntek’s past experience

with equivalent instrumentation. These costs are shown with the instrumentation equipment

in appendix E-7.

4.5 Plant Building

The building for the WTP has been sized according to the General Arrangement drawing

10034-G-01 located in Appendix A-3. The Building cost has been estimated at $409,000

using the budgetary quotation located in Appendix B-1. This quotation includes the

materials, construction, and transportation of the building materials. It does not include any

equipment or areas associated with the building such as the Laboratory, offices, lunch room,

and MCC control room. These areas have been estimated at $80,000 based on Lyntek’s past


projects and experience. Total cost for the building including these areas is estimated at

$489,000.

4.6 Transportation Costs

Transportation Costs for all items are estimated using a 13% factor based on the total capital

equipment cost. This factor is based on Lyntek’s past experience with similar projects.

4.7 Engineering and Construction Management Cost

Engineering and Construction Management costs have been developed by Lyntek. These

costs are to bring the project forward from its current status, to its completion and startup.

Boundaries for both construction management and Engineering share the same battery limits

as this report for the WTP. Costs can be seen below in Table 4.8 and Table 4.9. Detailed

costs can be found in Appendix E-10 and Appendix E-11.

TABLE 4.8: ENGINEERING COSTS

Total

Engineering and Design $ 295,670

Project Management $ 125,526

Office Overhead $ 29,516





TABLE 4.9: CONSTRUCTION MANAGEMENT COSTS

Total

Construction Supervisor $ 245,000

Project Engineer $ 175,000

Project Management $ 87,500





5.0 OPERATING COST ESTIMATE

5.1 Operating Costs Overview

Operating Costs for the WTP consist of electrical consumption, personnel, reagent

consumption, and water testing costs. Table 5.1 and Table 5.2 show a summary of these

costs. The largest operating Costs for the water treatment plant is Reagents. The costs have

been detailed at both 8,000 gpm and 4000gpmA detail of all operating costs associated with

the WTP can be found in

Appendix C-1.

TABLE 5.1: OPERATING COSTS (8000 GPM)

Power $ 375,511

Reagents $ 706,051

Maintenance $ 125,000

Labor $ 380,000

QAQC Testing $ 97,344

Operating Total $ 1,683,907



TABLE 5.2: OPERATING COSTS (4000 GPM)

Power $ 187,661

Reagents $ 36,990

Maintenance $ 125,000

Labor $ 380,000

QAQC Testing $ 97,344

Operating Total $ 1,159,995




5.1.1 Personnel Costs

The WTP is planned to operate with 2 operators per shift, 3 shifts per day, 8 hours per shift

and a foreman and lab technician for 8 hours during the day shifts. WTP maintenance crew

is expected to be combined with the mine maintenance crew and has not been accounted for

in this cost exercise. This will allow

5.1.2 Power Costs

Total operating power for the plant is expected to be 724KW, with total connected power at

850KW. The majority of this power is allocated for the IX Column Feed pumps (10-PP-30

and 10-PP-40), and the Leaf Filter Feed Pumps (30-PP-10 and 30-PP-20). Total operating

power for these four pumps is 559KW. A detailed list of power consumption and connected

power can be found on the equipment list in Appendix E-1. Prices for electricity

($0.06/KWH) are based on the Lyntek Phase 1 report issued on April 22nd 2010.

5.1.3 Reagent Costs

Reagent costs for Barium Chloride (BaCl2) and Diatomaceous Earth (DE) have been

estimated using Lyntek’s past experience on projects. Reagent consumption is 1442 lb/day

and 129 lb/day for BaCl2 and DE respectively. Both Reagents are expected to be shipped in

50lb bags.

5.2 Water Quality Testing

5.2.1 In house Radium and Uranium Testing

Uranium testing in house will be performed using a chemchek KPA-11M no operating costs

are included for these tests as no sample preparation is required for Uranium detection at the

desired detection range. A testing procedure is included in Appendix

Radium testing in-house will be performed using EPA approved methods listed in Appendix

F-2. Estimated cost for radium testing is detailed in Appendix C.1


5.2.2 Outside Laboratory Radium and Uranium Testing

Outside costs for Radium and Uranium testing have been estimated by Evergreen Analytical

Laboratory. Two times per week, samples are expected to be tested at the outside laboratory.

Frequency of testing is dependent upon the governing state’s agency requirements.


6.0 CONSTRUCTION SCHEDULE

A Construction Schedule has been prepared by Lyntek based on the design outlined in

section 3.0 PROCESS DESCRIPTION. See Appendix E-12 for Construction Schedule.

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